Real estate market remains weak : Hypoport slumps

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FRANKFURT (dpa-AFX) – A more pessimistic outlook for the year dealt a blow to the hopes of shareholders of financial services provider Hypoport for a revival of the real estate market on Tuesday. The shares were also in the afternoon, with a minus of almost 16 percent to 160.20 euros, the worst performer in the small cap index SDax. At its lowest point, the share price fell almost to 155 euros.

With the slide below the 21-day and 50-day lines – indicators of the short and medium-term trend – the chart picture has thus clouded over for the time being. However, the longer-term recovery trend, which started last September, remains in place for the time being. It will only start to wobble at a price well below 140 euros.

In July, the financial services provider had still spoken of the first signs of stabilization on the real estate market. Now, however, it is more cautious and takes a much more pessimistic view of the current year due to the continued weak development of its important real estate segment. In addition, Hypoport also qualified that the new forecast would only apply if the still subdued market development in private real estate financing picks up slightly.

A Borsianer said in the morning that there were no signs of a recovery in demand for mortgages. He described Hypoport’s second quarter as weak.

Meanwhile, for analysts at investment house Pereto, the current business performance and subdued outlook for the year are not too negative a surprise given the continued weakness of the real estate market. 2023 is simply a difficult year for the company, they say.

Hypoport has long been a beneficiary of the European Central Bank’s cheap money policy. This made real estate loans cheap, many people built houses and bought apartments. Last year, however, the ECB had to reverse the trend and has since raised the key interest rate sharply to get a grip on high inflation. Demand for real estate loans collapsed as a result.

As recently as September 2021, the share was trading at 612 euros, just below its record high of 618 euros in February 2021. But there was no stopping the downward trend – by September 2022, the share price had fallen by almost 90 percent to 72.55 euros before recovering. Since then, a volatile recovery has been underway, which recently also benefited from the prospect of an end to the cycle of interest rate hikes in the euro zone./mis/ngu/jha/

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